A rally in oil prices stimulated bullish demand for equities.
Commodity markets
Iraqi-Kurdish tensions drove oil prices higher as conflict erupted between the two regions.
Kurdistan is one of the biggest oil producers in the world and disruptions to production are to be expected.
The bubbling tensions drove crude oil above $52. Meanwhile, Brent oil reached its highest point in two-weeks, adding 1.5% to just two dollars below OPEC’s target mark of $60.
Gold prices crept above the $1300 mark has geopolitical fears amplified, not only from the Middle East but North Korea’s missile programme has added to the rally in safe-haven commodities.
European Markets
European stocks climbed higher with miners in the lead thanks to a rally in oil prices.
The euro is 0.25% weaker against a basket of its peers as Catalonia’s President Carles Puigdemont failed to call for independence from Spain before today’s deadline. The Pesident has called for talks between the regions before he declares independnece.
Germany’s DAX 30 reached its highest point, after climbing 0.1%. IBEX 35, Spain’s proxy is 0.2% weaker, weighed down by the political tensions in the region.
After Brexit negotiations reached a deadlock, Theresa May is personally travelling to Brussels to intervene in the exit talks. The pound is 0.2% higher as a result.
The UK’s FTSE 100 is ignoring the stronger pound, up 0.2% this morning.
US Markets
After disappointing inflation data sent the dollar lower on Friday, the currency is now edging upwards. The greenback is 0.1% stronger against a basket of currency pairs. On Sunday, Federal Reserve chair Janet Yellen said that consumer prices should begin to trend upwards after a surprisingly long period of softness.
The Dow Jones is 0.13% higher, while Wall Street’s S&P 500 is slightly stronger, up 0.09%. The tech-heavy Nasdaq 100 is 0.37% higher as before Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS)., General Electric (NYSE:GE) Co. report their earninsgs for Q3.
Asia-Pacific Markets
The Japanese yen increased by 0.1%, trading at 111.7 after falling below the 112 level overnight.
The HSI is 0.8% stronger, pushed up by financials.